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More than 400,000 Bitcoin have been withdrawn from exchanges since December 2024, representing nearly 2% of the cryptocurrency’s total supply, according to data from Santiment.
The outflows have pushed exchange-held Bitcoin to 2.11 million BTC, down 15% year-over-year, as ETFs and institutions absorb supply.
The latest Bitcoin outflow report from Santiment shows that the number of BTC held on exchanges has fallen sharply over the past year.
According to the firm’s Sanbase dashboard, more than 403,000 Bitcoin have been transferred out of exchange wallets since Dec. 7, 2024.
In general, this is a positive long-term sign, Santiment analysts noted in a recent X post. “The fewer coins that exist on exchanges, the less likely we’ve historically seen a major sell-off that causes downside pressure for an asset’s price.”
At a current market value near $90,000 per Bitcoin, this massive Bitcoin outflow translates into tens of billions of dollars in digital assets moving away from liquid markets and into cold storage or institutional custody, reflecting both security concerns and long-term holding strategies.
While individual holders are securing their BTC in private wallets, the Bitcoin outflow trend also reveals a growing appetite among exchange-traded funds (ETFs) and institutional investors.
According to Giannis Andreou, founder and CEO of Bitmern Mining, ETFs have quietly become major absorbers of these outflows. Institutional ownership has quietly crossed into a new phase: less liquid supply, more long-term holders, stronger price reflexivity, and a market driven by regulated vehicles, not trading platforms said Andreou
He emphasized that the ongoing Bitcoin outflow marks a paradigm shift in market structure: This shift is bigger than people think.
Bitcoin isn’t moving to exchanges anymore. It’s moving off them straight into institutions that don’t sell easily. The supply squeeze is building in real time.
Supporting this view, BitcoinTreasuries.net data shows that ETFs and public companies now hold more Bitcoin than all centralized exchanges combined — a first in the digital asset’s history.
The Bitcoin outflow aligns with rising ETF inflows, as funds like BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC continue to accumulate BTC to back their growing investor demand.
Crypto data firm CoinGlass further reinforces this trend, showing that Bitcoin held on exchanges has dropped to 2.11 million BTC as of late November 2025, down from 2.5 million the year before. That’s a striking 15% annual decline, even as prices fluctuate between $84,000 and $90,000.
Historically, a sustained Bitcoin outflow has been viewed as a bullish indicator, signaling that holders are not looking to sell in the near term.
Lower supply on exchanges reduces selling pressure and increases scarcity — often leading to price appreciation during market recoveries.
Market strategist Lyn Alden previously explained that “exchange balances are one of the best on-chain indicators of investor behavior. When those balances fall, it usually precedes major upward moves.”
As the total exchange-held BTC continues to shrink, analysts believe the Bitcoin outflow could set the stage for a powerful supply squeeze.
With ETFs and institutions hoarding supply, and retail investors shifting to cold storage, liquidity is tightening, potentially amplifying future price movements.
The scale of this Bitcoin outflow underscores a fundamental transformation in the market’s structure.
The balance of power is moving away from trading platforms and toward regulated investment vehicles and private holders.
With 403,000 BTC leaving exchanges in just 12 months, and institutional demand showing no signs of slowing, the Bitcoin outflow narrative could be the defining market force heading into 2025.
As Santiment concluded: Bitcoin’s continuous migration away from exchanges shows confidence, not fear. Historically, this kind of movement has always preceded major bullish cycles.
If history repeats, the ongoing Bitcoin outflow might just be the calm before another storm — this time, a bullish one.
